how to get a mortgage after bankruptcy

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  • Rrushi_Shqiptar
    Rrushi_Shqiptar Posts: 308 Forumite
    Debt-free and Proud!
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    Cobalt77 wrote: »
    If you check his post history, Rrushi Shqiptar seems to be making quite a few rather illogical posts recently.

    What makes you say that? Why are they illogical?
    Maybe they are illogical as they maybe a question or something that needs clarifying.

    I dont think that was a very fair thing to say btw Cobalt77
    I love green dots :T I hate red dots :mad:
  • pjc402
    pjc402 Posts: 3 Newbie
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    After the discharge period obviously Rrushi after 12 months you are free of obligations with regards to assets and contributing towards your debts in 90% of cases including my own.
  • diezeltruck
    diezeltruck Posts: 1 Newbie
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    Very informative post Lorax. Would you mind saying which lender gave you a mortgage offer

    Thanks
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    Anyone got any more experience regarding statement requirements? Or going with Nationwide for lending?

    I've got at least 10 current accounts, including several former-prime accounts that banks are happy for me to keep (but with don't lend markers on them).

    So I transfer my salary from 1 account to another to hit funding targets (e.g. Lloyds £1,500 paid in, to get credit interest & free cinema tickets. TSB £500 to get credit interest, Halifax to get the £3 reward).

    I'm thinking I'll probably go with Nationwide, as long as lending criteria stays the same (accepted from 3 years discharged, no max LTV for ex-bankrupts).

    As they'd be my main bank account I know they do electronic checks of their account statements... just hoping they won't want me to reel off 50 pages of statements for all other accounts!
  • mwarby
    mwarby Posts: 2,048 Forumite
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    I found that despite meeting the criteria (as best as I could tell) I was declined for a 95% decision in principle. I appealed and was still rejected, as 95% was high risk, what LTV I could get I was unable to find out.

    Edit this is for Nationwide
  • barracuda1986
    barracuda1986 Posts: 5 Forumite
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    Hi guys
    Sorry to drag this thread back up, but reading through it has given me a lot of hope! I was made bankrupt in Feb 2012 and discharged in Oct 2012, so not long with it left on my credit report then it's gone forever.
    I'm wanting to apply for a mortgage, and I am a first time buyer. We've already been speaking to a broker who didn't really seem like they wanted to help after weeks of going backwards and forwards, spoken to another broker today and not getting anywhere either. It seems that the biggest issue is we'll need a bigger deposit, which although I'm working and earning good, we need to move from where we are at the moment sooner rather than later. Ideally we need a 90-95% mortgage.


    I have rung Yorkshire Building Society this morning and they couldn't tell me they're lending criteria over the phone and gave me the only option to apply for a DIP and hopefully we would get accepted.


    Can anybody advise me further?
  • mb78
    mb78 Posts: 33 Forumite
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    barracuda1986 wrote: »
    Hi guys
    Sorry to drag this thread back up, but reading through it has given me a lot of hope! I was made bankrupt in Feb 2012 and discharged in Oct 2012, so not long with it left on my credit report then it's gone forever.
    I'm wanting to apply for a mortgage, and I am a first time buyer. We've already been speaking to a broker who didn't really seem like they wanted to help after weeks of going backwards and forwards, spoken to another broker today and not getting anywhere either. It seems that the biggest issue is we'll need a bigger deposit, which although I'm working and earning good, we need to move from where we are at the moment sooner rather than later. Ideally we need a 90-95% mortgage.


    I have rung Yorkshire Building Society this morning and they couldn't tell me they're lending criteria over the phone and gave me the only option to apply for a DIP and hopefully we would get accepted.


    Can anybody advise me further?

    I was discharged in 2012 same as you and last year had a Mortgage for £150k from Skipton no problem.

    Don't bother even looking at the typical 'high street' lenders as they won't touch you.

    Skipton will allow people 4 years after Discharge, but alot of this will come down to how much Deposit you have. We had a pretty healthy one so this prob helped.

    Knowing you went BR is Feb 2012 - come March 2018 the Bankrupcy will be off your Credit Report which will help.

    Also, make sure your outgoings for any credit cards you have are either nothing or get the balance down as much as possible - Especially as are looking for a 90-95% LTV.

    Any money you owe to people will come off any mortgage value they are prepared to offer as it will be unsecured.

    Its def worth waiting until you know BR is off your Credit Report knowing its only a few months away.

    Good luck with it.
  • tomconfused
    tomconfused Posts: 14 Forumite
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    Hello barracuda

    I went bankrupt in 2011 and discharged 2012 in dec so I think it comes off my record this month. However I believe every lender will ask if you have been bankrupt before. I even got asked this when I took at my home insurance.

    Anyway, I applied for a mortgage this May and it was still on my official record. I was buying New so it’s slightly different. I used the housbuilders mortgage broker and to be honest I thought there was no way we would be accepted and we just did it honestly expecting a no. The broker seemed to think I was nuts for worrying about it and said he saw no way we would be refused. Out of his products I think nationwide were the only one that would consider us. However he said after it had gone off the file that would go up to about 8. We put in the application and it got referred as he explained it would. As part of the referral I had to write a short letter explaining my bankruptcy. I did this and we got accepted in full within 5 days of speaking to the broker.

    I never thought we would be all together a mortgage or I would have to pay a hideous interest rate. But I got 1.74% with nationwide so it was the same rate as we would have got without the bankruptcy.

    The difference is I used help to buy and the government put in 20% of the deposit and I put in 6%. So I guess I was less of a risk in that sense. To give you numbers I earn £44k and my girlfriend £41k and we got a mortgage of £260k with the 6% deposit.
    So hopefully it shows you can get a mortgage, I’m still amazed it went through. I
  • jemmah1983
    jemmah1983 Posts: 313 Forumite
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    Thank you for this information. Gives a good list of appropriate lenders to try.
    I've stumbled across this not due to bankruptcy but due to a poor credit score! It's amazing that these scores can be soo high for people with bankeupsies yet when you have no defaults ccjs etc no averse credit it can be very poor and you can't seem to get any credit.
    I'll start working through the list.
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    jemmah1983 wrote: »
    Thank you for this information. Gives a good list of appropriate lenders to try.
    I've stumbled across this not due to bankruptcy but due to a poor credit score! It's amazing that these scores can be soo high for people with bankeupsies yet when you have no defaults ccjs etc no averse credit it can be very poor and you can't seem to get any credit.
    I'll start working through the list.

    'Scores' don't mean much - it's up to each lender based on your file.

    Have a look at this: https://www.moneysavingexpert.com/loans/credit-rating-credit-score

    It's a long read but very important - it could save you thousands in the long run.

    Sign up to the MSE Credit Club and Clearscore as a minimum - check EVERYTHING on your file is accurate and you're on the electoral roll (if eligible).

    You don't just get a poor score - and definitely don't just get a very poor score! Generally you've either done something bad (or the data is wrong, so it thinks you have), e.g. missed a payment etc. OR you haven't done something good (e.g. not on electoral roll).

    If those apply, you'll probably struggle with a mortgage anyway, but you need to have the facts first (e.g. what do they think is bad about your file). Credit club and clearscore are great for giving you an indication of that.

    Sort the credit file before even thinking about mortgage applications. For example if you had payments wrongly registered as missed, you put a dispute in and it's resolved in your favour, that makes a MASSIVE difference to what's available to you.

    Companies do what they like with credit files, data quality is appalling - especially for utilities and mobiles. It's definitely worth your time at least checking WHY you have a low score.

    Best of luck :)
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